Which of the Following Is a Firm's Cash Cycle

question 13

Multiple Choice

Which of the following is a firm's cash cycle?

• A)the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product
• B)the average length of time between when a firm pays cash to purchase its initial inventory and when it receives cash from the sale of the product produced from that inventory
• C)the average length of time between when a firm pays cash to purchase its initial inventory and when it sells that product
• D)the average length of time between when a firm originally purchases its inventory and when it sells the product produced from that inventory
• E)the average length of time between when a firm receives cash for its current inventory and uses that cash to purchase new inventory

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Definitions:

Unbalanced Perceptions

A cognitive bias where people might overvalue or undervalue certain aspects of a situation or individual due to lack of balance in perspective.

Centralization

The concentration of decision-making authority at the upper levels of an organization, with lower levels following the directives from above.

Cross-functional Teams

Groups composed of members from different departments or areas of expertise working together towards a common goal.

Formal Leader

An individual who holds an official leadership position or role, typically conferred by organizational authority or hierarchy.